Member Article

Party conferences urged: Let lettings lead us out of housing crisis

• “Too much talk of landlords as a problem and not enough talk of landlords as a solution“ • Number of renters up 88% since last census • Quarter of landlords break even or make a loss on their properties

Political parties should use the upcoming conference season to talk positively about how privately rented homes can help solve Britain’s housing crisis – that’s the view of one property expert.

Ajay Jagota of sales and lettings firm KIS believes the rocketing numbers of UK renters means policy makers must consider ideas like his call last week for tax breaks for good landlords, which would allow them to invest in new and better properties.

The call comes as research from the National Landlords Association revealed that more than a quarter of landlords only break even financially on their investment – or even make a loss.

The Confederation of British Industry this week revealed a “chronic lack of housing” in the UK, urging future governments to build 10 new towns and garden cities by 2025 and double the number of new homes currently being built to 240,000 a year.

Ajay, founder and CEO of KIS - the property firm with a string of branches across the North East and famous for becoming the first letting agent to abolish deposits and named Letting Agent of the Year at the 2013 Landlord and Letting Awards – believes that rented homes have to be part of the solution too.

He said: “Whenever we talk of solutions to the housing crisis there is always an underlying assumption that homes to buy are the only solution, but all the evidence suggests there is a significant and growing number of people who not only can’t afford to buy, but just don’t want to – 88% more at the last census than in the one before.

“That means we have to talk positively about privately renting and look at ways to encourage landlords to invest.

“While it’s good to see rented housing firmly on the political agenda, my worry is the coming party conference season might see too much talk of landlords as a problem and not enough of landlords as a solution.

“Yes, there is no doubt that there is a cold-hearted and even criminal element in our midst, but the solution is clearly giving the relevant authorities the resources to enforce existing laws, not putting regulation on top of regulation.

“Investment in homes has to mean investment in rental homes – and modest tax breaks for good landlords could go a long way. It could mean a better deal for renters too, as a wider supply of rented housing could well bring rents down while raising standards of accommodation through increased competition.

“We’re seeing a fundamental demographic shift towards renting in UK housing – policy makers must reflect that.”

This was posted in Bdaily's Members' News section by Ajay Jagota .